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Home My WebLink AboutItem 25 - Short Term Rental Ordinance Amending Planning and Building Agency www.santa-ana.org/planning-and-building/ Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report April 16, 2024 TOPIC: Ordinance Prohibiting Short-Term Rentals - Second Reading AGENDA TITLE Ordinance Amending the Santa Ana Municipal Code (SAMC) to add Article XXI to Chapter 8 of the SAMC Prohibiting Short-Term Rentals (Second Reading) Legal notice was published in the OC Reporter on April 10, 2024. RECOMMENDED ACTION Conduct a second reading and adopt an ordinance amending the Santa Ana Municipal Code (SAMC) to add Article XXI to Chapter 8 of the SAMC prohibiting Short-Term Rentals. ORDINANCE NO. NS-3061 entitled AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XXI TO CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE PROHIBITING SHORT-TERM RENTALS GOVERNMENT CODE §84308 APPLIES: No DISCUSSION At the April 2, 2024 meeting, the City Council adopted an urgency ordinance and conducted a first reading of a standard ordinance to amend the Santa Ana Municipal Code (SAMC) to add Article XXI to Chapter 8 of the SAMC, thereby prohibiting Short- Term Rentals. The standard ordinance, approved 4:3 with Councilmember Bacerra, Mayor Pro Tem Phan, and Mayor Amezcua dissenting, requires a second reading. The urgency ordinance, under a standalone motion and approved with unanimous votes, went into full force and effect immediately. Both ordinances reaffirm and clarify that short-term rentals, as defined therein, are and have not been permissible in Santa Ana. No changes to either ordinance were made by the City Council; a clean copy of the standard ordinance for second reading is attached to this report as Exhibit 1. Ordinance Prohibiting Short-Term Rentals - Second Reading April 16, 2024 Page 2 4 1 9 2 ENVIRONMENTAL IMPACT The City Council, at its April 2, 2024 regular meeting, found that, in accordance with the California Environmental Quality Act (CEQA), the proposed action is not subject to the requirements of the California Environmental Quality Act, pursuant to (Guidelines) Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Ordinance Submitted By: Ali Pezeshkpour, AICP, Planning Manager Approved By: Alvaro Nuñez, Acting City Manager Ordinance No. NS-XXX Page 1 of 5 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, ADDING ARTICLE XXI TO CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE PROHIBITING SHORT-TERM RENTALS WHEREAS, the proliferation of online vacation rental websites such as Airbnb.com and vrbo.com have encouraged and enabled City of Santa Ana (“City”) property owners, tenants, and occupants to rent their local, residential properties on a short-term rental (“STR”) basis to travelers or transients; and, WHEREAS, these short-term rentals, generally numbering less than 30 days, are often associated with excessive noise, parking problems, trash, and degradation of a neighborhood’s residential character; and, WHEREAS, the City has received numerous complaints from residents about the negative secondary effects of short-term rental uses in their residential neighborhoods; and, WHEREAS, Short-term rentals also remove housing stock that could otherwise be available for long-term rental or for sale. Data collected from various STR platforms reveals that there are more than 1,100 active STR units across Santa Ana. The City’s Regional Housing Needs Allocation (RHNA) for 2021-2029 is 3,137 permanent housing units. The 1,100 STRs represent about 35% of the City’s housing needs, diverting a significant portion of available housing away from permanent residents; and, WHEREAS, pursuant to Santa Ana Municipal Code (SAMC) Section 41-190(a), the Zoning Code (Chapter 41 of the SAMC) is a permissive ordinance, meaning that those uses expressly listed in the Zoning Code are permissible, and those not listed are prohibited. WHEREAS, at present, the SAMC does not list STRs as an approved use in any zoning district, making them prohibited and unauthorized under the current enforcement practice afforded by Section 41-190(a). WHEREAS, recent court rulings have brought into question the City’s ability to rely on the aforementioned section of the Zoning Code in specifically addressing STRs through the Code Enforcement process. WHEREAS, the Santa Ana Municipal Code (“SAMC”) does not expressly address short- term rentals in residential zoning districts. However, because short-term rentals are not expressly permitted in residential zoning districts under the SAMC, such transient uses are prohibited; and, WHEREAS, the City Council desires to amend the SAMC to expressly prohibit short- term rentals within the City, to reaffirm existing law, and to preserve the residential character of City neighborhoods and stem the negative, secondary effects caused by those uses; and, Ordinance No. NS-XXX Page 2 of 5 WHEREAS, in response to recent legal developments, this urgency ordinance seeks to amend the Santa Ana Municipal Code (SAMC) to prohibit short-term rentals in alignment with the SAMC's current practice and expectation, as well as compliance with recent court decisions; and, WHEREAS, there currently exists over 100 confirmed active cases of STRs that have ongoing enforcement notices and violations; WHEREAS, the City Council has determined that it is necessary for preserving the public peace, health, safety, and welfare to expressly prohibit short-term rentals within the City and to declare such uses as a public nuisance punishable under the SAMC. THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The recitals above are true, correct and each incorporated herein by reference and adopted as findings by the Santa Ana City Council (“City Council”) SECTION 2. Addition. Article XXI (Sections 8-3400 – 8-3402) is hereby added to Chapter 8 of the SAMC to read as follows: ARTICLE XXI. – SHORT-TERM RENTALS Sec. 8-3400. – Definitions. The definitions set forth in this Section shall govern the application and interpretation of this Article: (a) Home-sharing rental means the rental of a dwelling unit, or portion thereof, to a person or group of persons, for compensation whether monetary or otherwise, for lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days while at least one of the dwelling unit’s owners lives on-site, in the dwelling unit, throughout the visitors’ stay. (b) Short-term or vacation rental means the rental to a person or group of persons of a dwelling unit, or portion thereof, for compensation whether monetary or otherwise, for lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days without concurrently being occupied by the property owner. Sec. 8-3401. -Prohibited. It shall be unlawful for any person or entity to: offer or make available for rent (via advertisement on a short-term or vacation rental website or otherwise) or to rent (by way of a rental agreement, lease, sublease, license, via a short-term or vacation rental website, or any other means, whether oral or written) for compensation or consideration a home-sharing rental, short-term or vacation rental for less than 30 days, pursuant to a rental agreement, lease, sublease, license, via a short- term or vacation rental website, or any other means, whether oral or written, for compensation or consideration, or maintain any advertisement of a home-sharing rental, short-term or vacation Ordinance No. NS-XXX Page 3 of 5 rental for less than 30 consecutive days. Sec. 8-3402. -Violation; nuisance. Any violation of this Article is unlawful, is hereby declared a public nuisance, and constitutes a misdemeanor punishable as set forth in Chapter 1 of the SAMC section 1-8. At the discretion of the City Attorney, a violation of this Article may be prosecuted as an infraction or misdemeanor. In any civil action brought pursuant to this Article, a court of competent jurisdiction may award reasonable attorney’s fees and costs to the prevailing party. Pursuant to Municipal Code Section 1-21, the City may issue an administrative citation for any violation of this Article. Such administrative remedy may be exercised in place of, or in addition to, any administrative, criminal, civil, or equitable remedy allowed by law. SECTION 3. Severability. If any section, subsection, sentence, clause, phase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions might subsequently be declared invalid or unconstitutional. SECTION 4. CEQA Determination. The City Council finds that this Ordinance is not subject to the requirements of the California Environmental Quality Act, pursuant to (Guidelines) Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly and so is not a project. SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days after its adoption. SECTION 6. Publication. The City Clerk shall certify the adoption of this Ordinance and shall cause the same to be posted as required by law. ADOPTED this ___ day of ___________________, 2024. _______________________ Valerie Amezcua Mayor Ordinance No. NS-XXX Page 4 of 5 APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney _______________________________ Brandon Salvatierra Deputy City Attorney AYES: Councilmembers: ________________________________________ NOES: Councilmembers: ________________________________________ ABSTAIN: Councilmembers: ________________________________________ NOT PRESENT: Councilmembers: ________________________________________ Ordinance No. NS-XXX Page 5 of 5 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Jennifer L. Hall, City Clerk, do hereby attest to and certify the attached Ordinance No. NS- XXXX to be the original ordinance adopted by the City Council of the City of Santa Ana on _________________, 2024. Date: ________________ ____________________________________ City Clerk City of Santa Ana